turning trust into money

10_– 12 October 2011, Vienna, Reed Messe Wien

Session: Innovative AdvertisingTitle: Turning trust into moneySpeaker: Grig Davidovitz, CEO, RGB Media, Israel

Media Port

TURNING TRUST INTO MONEYA NEW REVENUE MODEL FOR

ONLINE NEWSPAPERS

Grig DavidovitzOctober 2011

Mittwoch, 12. Oktober 2011

Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz


Google



Doesn’t try to blindly convert eyeballs into money

Google



Doesn’t try to blindly convert eyeballs into moneyDeveloped a revenue model that is connected to it’s core business and unique advantage: SEARCH

Google



Doesn’t try to blindly convert eyeballs into moneyDeveloped a revenue model that is connected to their core business and unique advantage: SEARCH

Google



Doesn’t try to blindly convert eyeballs into moneyDeveloped a revenue model that is connected to their core business and unique advantage: SEARCHThe principle: “We know what you’re searching for, and we can match the best ads for your search”

Google



Newspapers



Newspapers

The need: to develop an revenue model that leverages the core business/unique advantage of newspapers.



What is the newspapers’ core business/unique advantage?




C R E D I B I L I T Y



“Truth agents” of the society (core business).







A primary source of information about the world (core business).






A primary source of information about the world (core business).

More credible than most other sites (unique advantage).




Integrating newspapers in the customer’s cycle

How can credibility be turned into revenue?Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz



How can credibility be turned into revenue?

First question: What is the best value for money in the category?





Second question: What is the best price for the products/services recommended?








Third question: How can I buy?








Newspapers: best agents to answer the first question








Newspapers: best agents to answer the first question• Have credibility








Newspapers: best agents to answer the first question• Have credibility• Have the information/methodology to obtain it








Newspapers: best agents to answer the first question• Have credibility• Have the information/methodology to obtain it• Have the SEO juice









After answering the first question - answer the next










Reader → Consumer = Revenue




Newspapers: best agents to answer the first question• Have credibility• Have the information/methodology to obtain it• Have the SEO power




An example






An example




First question: What is the best laptop?



An example





Google - Searches/month in the US



An example






Best laptop: 246,000



An example






Best laptop: 246,000Laptop reviews: 110,000



An example






Best laptop: 246,000Laptop reviews: 110,000Laptops: 1,830,000



An example







An example





Solution: create landing pages according to the users’ queries



An example





Solution: create landing pages according to the customers’ queries



An example





Solution: create landing pages according to the customers’ queries

(Once establishing brand recognition, users will also start coming directly to the review section)



An example



An example


Solution: different ecommerce links, including links from price comparison sites




An example



An example


Third question: How to buy?



An example



Solution: Monetization links



An example




1. Price comparison



An example




1. Price comparison

2. Amazon and other affiliates



An example




1. Price comparison

2. Affiliates (Amazon)

3. Contextual ads (AdSense, etc)



An example




1. Price comparison

2. Affiliates (Amazon)

3. Contextual ads (AdSense, etc)Highly effective - not everybody buys!



How to create the content?Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz


1. Many times it already exists

How to create the content?Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz



How to create the content?

... but - is this the right headline?






2. Rearrange information that was already created






2. Rearrange information that was already createdBest theater shows, according to the existing expert ranking







3. Ask your expert to create the content







3. Ask your expert to create the contentWhat are the best laptops?








4. Aggregate








4. Aggregate

5. Buy it






2. Rearrange information that was already created

Best theater shows, according to the existing expert ranking


4. Aggregate

5. Buy it



What about existing actionable content?Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz


What about existing actionable content?

Monetization widget




Monetization widget

Every article with relevant products/services has a monetization widget that enables users to act on what they read




Monetization widget


Fly to PortoExpedia - from 195

BA - from 295

IBERIA - from 255

Packages to Porto




Monetization widget



BA - from 295

IBERIA - from 255

Packages to Porto

Experiment: 2% click through rate (+ 5% conversion rate)




Monetization widget



BA - from 295

IBERIA - from 255

Packages to Porto

Aggressive AdSense implementation





Monetization widget



BA - from 295

IBERIA - from 255

Packages to Porto



But... Accidental consumption is NOT the main stream of revenue




Monetization widget



BA - from 295

IBERIA - from 255

Packages to Porto


But... Incidental consumption is NOT the main revenue stream





Monetization widget



BA - from 295

IBERIA - from 255

Packages to Porto


Not enough!

But... Incidental consumption is NOT the main revenue stream




AdvantagesTurning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz


Advantages

1. Creating a new, substantial revenue stream



Advantages


Average online newspaper RPM in US: $8-10



Advantages


Average online newspaper RPM in US: $8-10Average review site RPM in US: $40



Advantages



In some verticals (online brokers, fitness equipment): over $100



Advantages


On top of display!


In some verticals (online brokers, fitness equipment): over $100



Advantages

2. Diversifying the monetization model




Advantages

Pay per View


Pay per Click Pay per Action




Advantages

Pay per View



The risk for the advertiser




Advantages

Pay per View




Maximal




Advantages

Pay per View




Maximal ZERO!




Advantages


3. Access to a new pie: the sales pie




Advantages



Traditional revenue sources




Advantages




Advertising pie

15%

15%

70%

Online - GoogleOnline - othersAll the rest




Advantages




Advertising pie

15%

15%

70%


+ Selling information




Advantages



Traditional revenue sources The new revenue model

Advertising pie

15%

15%

70%






Advantages



Traditional revenue sources The new revenue model

Advertising pie

15%

15%

70%



98%

2%

Sales pie





Advantages






Advantages



4. Solving one of the biggest problems online: too much information to choose from




Advantages




What is the best laptop for me?




Advantages




What is the best laptop for me?

?Who can I trust



Advantages



4. Solving one of the biggest problems today: too much information to choose from




Advantages




5. Improving the user experience




Advantages




5. Improving the user experience

I wanna buy this book!




It starts happening...Consumer Search was acquired by The New York Times for 33 million dollars




The New York Times holiday gift guide





CNET





CNET

Fashion Telegraph



(if it were a newspaper)



TURN TRUST INTO MONEY

A NEW REVENUE MODEL FOR

ONLINE NEWSPAPERS

(if it were a newspaper)



turning trust into money

Business

society core business

world core business

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c r e d i b i

i tytruth agents

best value

davidovitz googledoesnt

davidovitz googlemittwoch